Gold is one of the most coveted metals in the Indian sub-continent. From weddings to anniversary to birthdays, Indians have been buying and stacking gold for centuries. Gold is considered a symbol of prosperity, purity as well as stability in the Indian culture.
Considering the soaring prices of gold over last several years, gold has become an excellent tool of investment. Gold deposits and gold certificates too have been launched by financial organizations for customers who do not want to buy physical gold but want to invest in the metal because of high associated returns.
Out of the several avenues available for buying gold, some of the most popular ones in India are listed here.
Online gold purchase through banks
Pure gold in 24 carat can be obtained online via various banks. Banks like ICICI, HDFC, Axis Bank etc. offer customers an option to procure gold online. Customers just need to login to their online banking accounts, place the order for buying gold and then visit the nearest bank branch to receive their gold coin. Most banks assure highest purity of gold and offer comfortable denomination starting from 0.5g and going up to 100g for customers to buy. The gold that is bought online is generally delivered in a tamper-proof package along with certi-card that guarantees purity.
Wholesale buying of gold
Wholesale buying of gold is different as compared to that of any other commodity. Considering the prices and utility of gold in the economy, wholesale buying is not allowed. However, large quantities of gold can be obtained at comparatively lower prices by trading the same in the gold trading markets. These markets have large quantities of gold in different sizes and weights. This includes bars as well as coins. Generally, large gold quantities are bought by gold merchants and jewelry shop owners from the gold trading market.
Retail buying of gold
Retail buying of gold is the most common way of obtaining gold. For this customers can visit any of the jewelry showrooms and choose the gold article of their choice. This includes jewelry as well as gold coins and bars. Another way of buying gold in bulk is to buy from sellers who wish to sell their gold because of urgent financial needs. Retail buying of gold can be in two forms, gold coins or bars and finished gold jewelry. Gold jewelry costs more than pure form of gold since cost of making is also added to the gold piece.
Buying gold through jewelry websites
Lately, a lot of websites have come up which offer gold jewelry as well as coins for customers to buy. These transactions are made exactly like standard online transactions where purchased products are delivered at your doorstep. Some examples of such websites are bluestone.com, caratlane.com etc.
Gold as an investment tool is a highly efficient and rewarding financial option. Since appreciation of gold has, in the past, always kept up with growing inflation in the country, actual returns can be realized when you invest in gold unlike those earned via any other form of investment. Gold ETF or Gold Exchange Trade Fund is a type of mutual fund which invests money in gold. Hence, this fund performs well due to the ever appreciating nature of gold.
Rates of gold in India
Gold rates in India have followed a kind of topsy-turvy curve for the last one year now. Prices have dropped and hiked quite frequently, making it difficult for investors to decide on to their gold investments. General rate prevalent for almost all parts of India is Rs.2500 per gram. This may fluctuate a little with the city that customers buy in and also the purity that they are looking at. Generally 24K gold always costs more than 22K gold.
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